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Transferring property to Limited Company
AlisonTM
Posts: 13 Forumite
Good Afternoon.
I outright own a property and looking to purchase a 2nd with my partner, renting the 1st (suggestions that there are better investments by selling it welcome!).
To transfer it to my own Limited Company, does the full value monetary transaction have to occur? i.e. I have to raise the capital for 1 day, to move from the company bank account to myself?
Best way to do this?
Thank you
I outright own a property and looking to purchase a 2nd with my partner, renting the 1st (suggestions that there are better investments by selling it welcome!).
To transfer it to my own Limited Company, does the full value monetary transaction have to occur? i.e. I have to raise the capital for 1 day, to move from the company bank account to myself?
Best way to do this?
Thank you
0
Comments
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You can sell it to the Ltd for any value you wish, but the business has to pay SDLT on the market rate.AlisonTM said:Good Afternoon.
I outright own a property and looking to purchase a 2nd with my partner, renting the 1st (suggestions that there are better investments by selling it welcome!).
To transfer it to my own Limited Company, does the full value monetary transaction have to occur? i.e. I have to raise the capital for 1 day, to move from the company bank account to myself?
Best way to do this?
Thank you
Personally I would sell it and invest the money in FTSE bonds, the costs and hassle of a rental property is not something I can be bothered dealing with.2 -
That is right, assuming the property is in England. SDLT will be due on the market value of the property with the extra 3% applying (even if it is the only property owned by the company). There could be problems with the 15% flat rate if the property is worth over £500,000.MattMattMattUK said:
You can sell it to the Ltd for any value you wish, but the business has to pay SDLT on the market rate.AlisonTM said:Good Afternoon.
I outright own a property and looking to purchase a 2nd with my partner, renting the 1st (suggestions that there are better investments by selling it welcome!).
To transfer it to my own Limited Company, does the full value monetary transaction have to occur? i.e. I have to raise the capital for 1 day, to move from the company bank account to myself?
Best way to do this?
Thank you
....1 -
Really helpful, thank you. I think this £150k property will give a decent rental yield but yet to decide if I want the potential hassle
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